East African tax authorities mull new levy for foreign tech firms

Both the digital services tax and significant economic presence tax remain unpopular in Africa.

Photo credit: File

Tax administrations in the region are considering adoption of a uniform significance economic presence (SEP) tax that will subject foreign tech companies with operations locally to a levy on their services.

Commissioners-general of tax authorities from all eight countries in the East African Community, after a meeting in Nairobi this week, resolved to step up efforts to tax the digital economy through the SEP tax.